Modular refineries house owners’ canvass FG funding for native manufacturing

As Nigeria grapples with the low provide of premium motor spirit (PMS), additionally known as petrol, into the nation as a consequence of shortage of international alternate to spice up importation, modular refinery house owners are in search of authorities intervention to increase their refining capability thereby enhancing provide.

The refinery house owners, below the aegis of Crude Oil Refinery-owners Affiliation of Nigeria (CORAN) Heineken Lokpobiri, who met with the minister of state, Petroleum Assets (Oil), in Abuja, advocated the institution of a kicked known as for the institution of a Refinery Intervention Fund to help native refineries increase their capability from the present 27,000 barrels per day to about 400,000 barrels per day.

Momoh Jimah Oyarekhua, Chairman of CORAN, who made their request identified throughout a courtesy go to to the minister in Abuja, additionally sought the minister’s intervention to spice up crude oil provide to members of the affiliation and in addition assist them scale back the charges they pay to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for each litre of product they refine in-country.

Oyarekhua mentioned that the modular refineries which might be at present producing are starved of crude and even when the crude is on the market, the native producers need them to pay for it in US {dollars}.

“Now we have met with the NUPRC, on the difficulty, as a result of the matter is captured below the home crude oil provide obligation which is clearly stipulated within the PIA, we now have intimated them with the manufacturing capability of native refiners and in addition sought their dedication on home crude obligation to all modular refiners.

“Now we have just lately written to them once more to ask for one more assembly to know the place they’re on the difficulty,” he mentioned.

Oyarekhua, who can also be the chairman of OPAC Modular Refinery, requested the minister to assist them facilitate entry to crude oil below the home crude obligation as stipulated by the PIA to function feedstock for his or her refineries.

He mentioned that the shortage of crude ensures have held again buyers who’re contemplating financing the operations of modular refineries. “Buyers see this as an obstacle and are unwilling to take a position,” he mentioned.

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“Having one gigantic refinery is just not an answer immediately. Creating modular refineries in areas the place we now have our crude entice immediately is the answer that Nigeria requires even with the pipeline vandalization, with crude theft and all of that.

In such clusters, if in case you have modular refineries that might produce this crude into the native market it will be a great way to assist the nation to be self-sufficient within the refined merchandise.

He mentioned provisions must be made to see the variety of modular refineries improve to 40 within the area, with refining capability of 10,000 barrels per day so {that a} minimal of about 400, 000 barrels of crude will be refined within the Niger Delta.

Talking on excessive charges, Oyarekhua mentioned, “As at immediately, for each litre of AGO or DPK we ship into the market, we pay cumulative charges of as much as N9.80 which invariably will increase the worth of that product to the market.

“As refiners, our first curiosity is to serve the market; nonetheless, it’s not to make the worth of the merchandise unaffordable to Nigerians.

“However if you add these charges to the product, it implies that the retail value is additional elevated for the customers.

“The PIA didn’t say that the native crude refinery house owners must be those to pay these charges, however we now have been receiving letters from the NMDPRA, asking that we remit these charges.

He subsequently urged the minister to intervene to resolve this problem.

Responding, Lokpobiri promised to look into the assorted points raised and discover methods to resolve their challenges.

In line with him, the federal government has the accountability of offering conducive setting for companies to thrive and that it will be sure that it

The minister, whereas encouraging the refinery house owners to hunt monetary help from improvement finance establishments just like the Financial institution of Trade, Afrexim Financial institution amongst others, additionally promised to have interaction with related companies in regards to the points.

“We are going to interact with the related stakeholders to make sure extra entry to crude to the native refineries in order that they’ll refine petroleum merchandise to contribute in the direction of assembly the native demand. We are going to do no matter we are able to do as a ministry to resolve these points, he mentioned.